467 pips from high on Monday
It has not been a good week for the GBPUSD. The the higher Monday came in at 1.5494. The low today is at 1.50276. The BOE was responsible yesterday. US employment is responsible today.
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Looking at the daily chart, the prices move below the may swing lows at the 1.5086 – 89 area. The 61.8% retracement of the year's trading range is also in that area 1.50849. This is now a key risk level for shorts. Stay below and the bears remain in control.
The low at 1.5027 is somewhat random. It sits between the aforementioned resistance at the 1.5085 area and the next target area starting at 1.4994 and extending to 1.4969 (see daily chart). Of course the 1.5000 level is also a key psychological level. I would expect that there would be good support at the 1.4994-1.5000 level on the first test.
Looking at the shorter term chart showing the action today, the last leg down from the employment report took the price from 1.5105 to 1.5027. The 38.2%-50% of that move comes in at 1.50745-1.5089. Note that unlike the EURUSD which was in a 40 pip trading range going into the data, the GBPUSD had already gone about 100 pips lower. So there could be some reluctance to go much lower. So traders will be watching the 1.5074-89 level. A move above this level will muddy the water and it might signal more of a neutral level after the sharp fall this week. Remember from the daily chart the 1.5085 level is also a key level. So this area is key to stay below. It keeps the sellers happy. Be aware.
